New Delhi: A recent survey conducted by Haqdarshak and DBS Bank India has provided us with a better insight into the financial behaviors and issues of rural women entrepreneurs. As part of the ‘Women and Finance’ series, the research throws light on how these women, the pillars of numerous local economies, deal with their money.
Saving Behaviors:
The good news? Most rural women entrepreneurs are saving money regularly! Around 90% put aside a portion of their income each month. Savings habits vary by region, 100% of women in Madhya Pradesh save, compared to 95% in Maharashtra and 73% in Rajasthan. However, the amount saved differs:
- 57% save less than 20% of their income.
- 33% manage to save between 20% and 50%.
- 5% can save more than half of their earnings.
Who Decides on Money Matters?
More women are taking control of their money, but old roles remain:
- 18% make financial decisions independently.
- 47% make decisions together with their husbands.
- 24% report that their husbands take care of all the money issues.
- 11% ask family members before making financial decisions.
Despite the rise of digital banking, rural women entrepreneurs still like the traditional way of banking.
- 89% prefer to go to the bank personally.
- 99% have bank accounts, but only 38% conduct their business using digital banking.
- 70% of those who use digital banking use only UPI, and 20% use UPI combined with other digital payments.
How they finance their businesses?
Raising money to start and grow a business is a significant challenge. The survey revealed:
- 36% of women used personal savings to establish their business.
- 25% borrowed.
- 29% used a combination of savings, loans, or borrowed from friends and relatives.
- Almost 80% received the funding through Self-Help Groups (SHGs), 43% of whom relied solely on SHG loans.
What they require to expand?
In order to grow their businesses to the next level, such entrepreneurs require:
- Better access to the support of their industry and government.
- Assistance with digitization and internet banking.
- Mentorship and networking for business.
- Further opportunities to provide employment for other women in their areas.
DBS Bank Newsroom pointed out that Indian rural women entrepreneurs employ about 22 to 27 million individuals and emphasized the necessity to support them for accelerated growth.
Indian rural women entrepreneurs demonstrate remarkable business acumen and financial prudence. Their desire for conventional banking and high savings rates indicate resilience, but also a requirement for enhanced financial literacy. Through enhanced digital access, provision of mentorship, and enhanced government support, these women can expand their businesses and contribute further to their local economies.
Initiatives such as the collaboration between DBS Foundation and Haqdarshak are already striving in this direction, empowering rural women entrepreneurs to establish more robust financial security and a better future.
